Latest news with #Biktarvy
Yahoo
5 days ago
- Business
- Yahoo
Gilead Sciences's Q2 Earnings Call: Our Top 5 Analyst Questions
Gilead Sciences delivered a better-than-expected second quarter, propelled by the strong performance of its HIV portfolio and the launch of Yeztugo, its twice-yearly injectable for HIV prevention. Management attributed the 7% year-over-year HIV growth to robust demand for Biktarvy and Descovy, along with effective commercial execution. CEO Daniel O'Day highlighted, 'Biktarvy continues to lead in share in major markets around the world,' and described Descovy's quarter as its 'strongest ever,' supported by heightened awareness and growing use of pre-exposure prophylaxis (PrEP). The company also noted that new product launches, particularly Yeztugo, contributed to positive momentum, while declines in Veklury sales due to reduced COVID-19 hospitalizations partially offset gains in the base business. Is now the time to buy GILD? Find out in our full research report (it's free). Gilead Sciences (GILD) Q2 CY2025 Highlights: Revenue: $7.08 billion vs analyst estimates of $7.00 billion (1.8% year-on-year growth, 1.1% beat) Adjusted EPS: $2.01 vs analyst estimates of $1.96 (2.7% beat) Adjusted EBITDA: $3.87 billion vs analyst estimates of $4.02 billion (54.7% margin, 3.6% miss) The company slightly lifted its revenue guidance for the full year to $28.5 billion at the midpoint from $28.4 billion Management raised its full-year Adjusted EPS guidance to $8.10 at the midpoint, a 2.5% increase Operating Margin: 34.9%, down from 38% in the same quarter last year Market Capitalization: $149.1 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions From Gilead Sciences's Q2 Earnings Call Tyler Van Buren (TD Cowen) asked about the early uptake trajectory for Yeztugo and whether initial prescriptions would grow linearly or accelerate. Chief Commercial Officer Johanna Mercier said the launch was 'super thrilled to see' but noted it was still early, emphasizing high prescriber engagement and the process of building access across plans. Terence C. Flynn (Morgan Stanley) inquired about the durability of Descovy's growth rate and visibility of PrEP market trends. Mercier explained that robust PrEP market growth and improved access were key, but anticipated that as Yeztugo gains traction, a shift in product mix could occur. Umer Raffat (Evercore) questioned the impact of potential Medicaid policy changes, such as Most Favored Nation proposals, on Gilead's revenue. CEO Daniel O'Day acknowledged industry uncertainty and highlighted that HIV's safety net programs provide some protection, but broader policy changes remain a risk. Chris Schott (JPMorgan) sought clarification on the status of the WONDERS weekly HIV treatment program, which is on clinical hold. Chief Medical Officer Dietmar Berger said confidence in the pipeline remains high, with ongoing analysis to determine next steps for the program and updates expected in due course. Courtney Breen (Bernstein) followed up on why management did not raise Yeztugo launch expectations despite positive early access and uptake indicators. Mercier explained that the launch is only six weeks in and more time is needed to see sustained coverage and prescription momentum before updating guidance. Catalysts in Upcoming Quarters In the coming quarters, the StockStory team will monitor (1) the adoption curve and access expansion for Yeztugo in both U.S. and international PrEP markets, (2) pivotal clinical updates for ARTISTRY-1 and ARTISTRY-2, which could support new HIV treatment regimens, and (3) regulatory filings and data readouts for Trodelvy and anito-cel in oncology and cell therapy. Progress in reimbursement negotiations and updates on policy risk management will also be important indicators of execution. Gilead Sciences currently trades at $120.22, up from $110.36 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Our Favorite Stocks Right Now Donald Trump's April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
09-08-2025
- Business
- Business Insider
Gilead price target raised to $140 from $126 at BofA
BofA analyst Tim Anderson raised the firm's price target on Gilead (GILD) to $140 from $12 6 and keeps a Buy rating on the shares. The company's Q2 results were good overall, with Biktarvy and Descovy beating consensus, but slightly below the firm's above-consensus estimates, the analyst tells investors in a research note. The firm added that the print confirms its investment thesis that Gilead is a beat and raise story on HIV, with anchor brand Biktarvy playing a pivotal role as incremental operating margin is likely as high as any ever gets. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Yahoo
08-08-2025
- Business
- Yahoo
Gilead Sciences Lifts Annual Outlook As Yeztugo Launch Nears
Gilead Sciences (NASDAQ:GILD) announced its second-quarter 2025 earnings and revised annual outlook after the market closed on Thursday. The HIV drug maker reported adjusted earnings of $2.01 per share, beating the consensus of $1.94. Sales reached $7.08 billion, beating the consensus of $6.94 billion. Total second quarter 2025 product sales increased 2%, and excluding Veklury, the sales were up 4% to $6.9 billion, primarily due to higher HIV, Livdelzi (seladelpar), and Trodelvy (sacituzumab govitecan-hziy) sales, partially offset by lower chronic hepatitis C virus (HCV) sales increased 9% to $3.5 billion, primarily driven by higher demand. Descovy sales increased 35% to $653 million, primarily driven by higher average realized price and demand. The Liver Disease portfolio sales decreased 4% to $795 million, primarily driven by lower HCV sales, partially offset by increased demand for Livdelzi, Hepcludex (bulevirtide), and chronic hepatitis B virus (HBV) products. Veklury sales decreased 44% to $121 million. Cell Therapy product sales decreased 7% to $485 million, reflecting ongoing competitive headwinds. Trodelvy sales increased 14% to $364 million, primarily driven by higher demand and inventory dynamics. Product gross margin was 78.7% in the second quarter of 2025 compared to 77.7% a year ago. Non-GAAP product gross margin was 86.9% in the second quarter 2025 compared to 86.0% in the same period in 2024. The increases were primarily driven by product mix. View more earnings on GILD Gilead authorized a new $6.0 billion stock repurchase program, with no fixed expiration, which will commence upon the completion of the previously approved program. Guidance Gilead Sciences raised fiscal 2025 adjusted earnings guidance from $7.70-$8.10 per share to $7.95-$8.25 compared to the consensus of $7.96. The company also increased its 2025 sales guidance from $28.2 billion-$28.6 billion to $28.3 billion-$28.7 billion compared to the consensus of $28.65 billion. Gilead sees Veklury sales of $1 billion, down from prior guidance of $1.4 billion. Separately, Arcus Biosciences Inc (NASDAQ:RCUS) and Gilead agreed to not pursue a Phase 3 study for etrumadenant (adenosine A2a/A2b receptor antagonist). In June, Gilead returned its license to etrumadenant to Arcus. In its second quarter earnings release, Arcus said it engaged with the FDA in March regarding results from the ARC-9 study evaluating etrumadenant in third-line metastatic colorectal cancer. Although the FDA's feedback confirmed the potential for a registrational path for this program in third-line mCRC, the decision is based on strategic priorities. In July, Gilead Sciences announced a strategic partnership agreement with the Global Fund to Fight AIDS, Tuberculosis and Malaria to supply lenacapavir, Gilead's twice-yearly injectable HIV-1 capsid inhibitor, for the prevention of HIV as pre-exposure prophylaxis (PrEP). Through the agreement, Gilead will supply enough doses to reach up to two million people over three years in countries supported by the Global Fund, which will be of no profit to Gilead. Analysts' Take Goldman Sachs, in an investor note on Friday, wrote, 'Overall, we view the updates as positive, and expect the Yeztugo launch, in addition to potential policy dynamics to be the primary driver of stock performance as we head into the back half of the year.' Analyst Salveen Richter updated the model for Gilead based on the second quarter EPS trends and updated guidance. Hence, the analyst maintains the Neutral rating, raising the price forecast from $100 to $105. Truist Securities upgraded Gilead Sciences from Hold to Buy, raising the price forecast from $108 to $127. Price Action: GILD stock is trading higher by 9.07% to $120.30 at last check Friday. Read Next:Photo by Michael Moloney via Shutterstock Latest Ratings for GILD Date Firm Action From To Mar 2022 Barclays Maintains Underweight Mar 2022 RBC Capital Maintains Outperform Feb 2022 BMO Capital Downgrades Outperform Market Perform View More Analyst Ratings for GILD View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? GILEAD SCIENCES (GILD): Free Stock Analysis Report This article Gilead Sciences Lifts Annual Outlook As Yeztugo Launch Nears originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
08-07-2025
- Business
- Globe and Mail
Gilead Sciences Rallies 27.2% in Six Months: Buy or Sell the Stock?
Shares of Gilead Sciences, Inc. GILD have gained 27.2% in the past six months against the industry 's decline of 2.2%. The stock has also outperformed the sector and the S&P 500 index in this time frame. Gilead Outperforms Industry, Sector & S&P 500 Index It has been an eventful year for GILD so far. The company recently obtained FDA approval for its twice-yearly injectable HIV-1 capsid inhibitor, lenacapavir, for the prevention of HIV. This groundbreaking injectable therapy marks the first and only twice-yearly pre-exposure prophylaxis (PrEP) option available in the United States. Let's delve further into GILD's strengths and weaknesses to analyze how to play the stock at present. Lenacapavir Approval Boosts GILD's HIV Franchise Gilead has a market-leading portfolio of HIV treatments. Flagship drug Biktarvy accounts for over 51% share of the treatment market in the United States and should maintain momentum. Descovy (FTC 200 mg/TAF 25 mg) for PrEP is also witnessing good uptake. It maintains over 40% market share in the PrEP market in the United States. The recent FDA approval of lenacapavir under the brand name Yeztugo solidifies GILD's HIV portfolio as its other prevention drug, Truvada, faces generic competition. At present, there are two FDA-approved daily oral medications for PrEP — Truvada and Descovy. As the first long-acting injectable PrEP administered just twice a year, Yeztugo addresses persistent barriers, such as challenges with daily oral PrEP, adherence, stigma and healthcare access, which have limited broader PrEP adoption. This approval also represents a paradigm shift in HIV prevention and is expected to catalyze uptake among populations that have historically been underserved by existing prevention tools. Yeztugo has a competitive advantage as it needs to be taken only twice a year, unlike daily oral pills, and addresses a broad population. The European Medicines Agency has also validated the Marketing Authorization Application for twice-yearly lenacapavir for HIV prevention. Livdelzi Strengthens GILD's Liver Disease Portfolio GILD's diverse portfolio also includes drugs for liver, hematology/oncology and inflammation/respiratory diseases. The FDA approval of seladelpar for the treatment of primary biliary cholangitis (PBC) has strengthened GILD's liver disease portfolio and validated its CymaBay acquisition. The drug's initial uptake is encouraging. The candidate was approved under the brand name Livdelzi. Gilead also recently received conditional marketing authorization from the European Commission for seladelpar for the treatment of PBC. Challenges for GILD's Oncology Business Gilead's oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business. However, the Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe that are expected to continue in 2025. Breast cancer drug Trodelvy's sales were lower than expected in the first quarter due to inventory dynamics. Nonetheless, Gilead announced positive top-line results from the phase III ASCENT-03 study on Trodelvy, which showed highly statistically significant and clinically meaningful improvement in progression-free survival in patients with first-line metastatic triple-negative breast cancer (mTNBC) who are not candidates for checkpoint inhibitors. The potential launch of anito-cel in multiple myeloma and Trodelvy in first-line mTNBC in 2026 will strengthen the company's oncology business. GILD's Valuation and Estimate Revision According to the price/earnings ratio, GILD's shares currently trade at 13.62x forward earnings, lower than the large-cap pharma industry's average of 15.01X but higher than its mean of 10.52X. Earnings estimates for GILD have moved north in the past 60 days. The bottom-line estimate for 2025 has inched up to $7.92 from $7.91, while that for 2026 has improved to $8.48 from $8.39. Invest in GILD Large biotech companies are generally considered safe havens for investors interested in this sector as they are well-equipped to weather the uncertain macroenvironment. Gilead's efforts to constantly innovate its HIV portfolio should enable it to maintain growth amid competition from GSK plc GSK. The approval of Yeztugo for PrEP is a major boost for the company. GSK's HIV portfolio sales are being driven by strong patient demand for Cabenuva, Apretude and Dovato. GILD has also collaborated with Merck MRK to evaluate the investigational combination of islatravir and lenacapavir for the treatment of HIV. Gilead's strategic deals and acquisitions to diversify its business are encouraging. We recommend the stock to prospective investors, as we believe there is more room for growth following Yeztugo approval, even though Biktarvy sales are expected to be under pressure due to the redesign of Medicare Part D. Another positive factor for both prospective and existing investors is the company's attractive dividend yield. Gilead has been consistently increasing and paying out dividends. The company declared a quarterly dividend of $0.79 per share of common stock for the second quarter of 2025. Its strong cash position (as of March 31, 2025, GILD had $7.9 billion of cash, cash equivalents and marketable debt securities) indicates that the current yield of 2.83% is sustainable. Gilead presently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GSK PLC Sponsored ADR (GSK): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
CNBC
08-07-2025
- Business
- CNBC
Healthy Returns: Medicaid cuts in Trump's megabill may affect some drugmakers more than others
We're back from the holiday weekend with President Donald Trump's "big beautiful" bill officially signed into law. His landmark tax cut and spending package includes more than $1 trillion cuts to Medicaid, which will leave millions of vulnerable Americans without health insurance and threaten the hospitals and centers that provide care to them. While the health-care spending reductions will have massive human costs, they will also affect the pharmaceutical industry. Medicaid only accounts for a portion of many drugmakers' revenue in the U.S. – and an even smaller share of their total revenue worldwide. Medicaid also reimburses companies for drugs at lower rates than those in other programs like Medicare or commercial insurance, according to a Monday note from Leerink Partners analyst David Risinger. That's largely due to a program that requires drug manufacturers to provide rebates to states in exchange for Medicaid coverage of their drugs, resulting in lower net drug prices. Still, Risinger said "future loss of revenue is a marginal negative" for drugmakers. He also said some companies' sales are more exposed to the Medicaid market than others, based on previous company commentary and his firm's internal estimates. Vertex Pharmaceuticals and Gilead rely more on Medicaid than other large-cap pharmaceutical companies, Risinger said. Medicaid accounts for 25% of Vertex's U.S. revenue and 22% of Gilead's domestic sales, according to the note. Vertex disclosed at a conference in June that Medicaid accounts for 23% of sales from its cystic fibrosis medicines, which are the company's key revenue drivers. That tracks: Half of all children and a third of all adults with that genetic condition rely on Medicaid to afford the treatments and care they need to live a healthy life, according to the Cystic Fibrosis Foundation. Medicaid also plays a large role in HIV prevention and treatment, especially for underserved populations, which is a core focus for Gilead. For example, the company's HIV treatment pill Biktarvy was ranked the second-highest in terms of total Medicaid drug spending in 2022, and was still one the most widely used drugs in the program in 2024, according to a note from Jefferies analysts in March. Still, the analysts said the hit Gilead's business will likely take from Medicaid cuts would be "manageable." The note was based on estimates from a previous version of the bill. Commercial insurers also provide the majority of coverage for HIV prevention and ongoing treatment, while Medicaid plays a smaller, though still important, role. Medicaid represents 15% of Roche's U.S. revenue, 12% of Johnson & Johnson's domestic sales (excluding its medical device business) and 12% of Novo Nordisk's U.S. revenue. Among major pharmaceutical companies, Bristol Myers Squibb and Pfizer had the lowest exposure, with just 4% of their U.S. revenues coming from Medicaid, each. Risinger noted that significant Medicaid cuts will not occur until after the November 2026 midterm elections, so any financial impacts to drugmakers will essentially begin in 2027. There's also one more important win for drugmakers in Trump's bill to take into account: a provision that will exempt more medicines from the Inflation Reduction Act's Medicare drug price negotiations. We'll continue to monitor the impact of legislation on the industry, so stay tuned. Feel free to send any tips, suggestions, story ideas and data to Annika at We're halfway through 2025, which means we have some fresh digital health funding data to review. Even in a volatile macroeconomic and policy environment, the sector saw "strong momentum," according to a new report from Rock Health. Digital health companies in the U.S. received $6.4 billion in funding in the first half of the year, up from $6 billion in the same period last year and $6.2 billion in the first half of 2023, the report said. The sector raised $3.4 billion in venture funding in the second quarter alone, up substantially from the average of $2.6 billion per quarter since 2023. Startups that use artificial intelligence as a core part of their product raised 62% of all digital health venture funding during the first half of the year, the first time that AI-enabled companies have captured a majority of the fresh capital. These businesses pulled in an average of $34.4 million per round. "Digital health is proving it is more than just steady and resilient; the sector is entering a new phase of traction and impact, with AI playing a linchpin role," Rock Health said. But while funding is up, deal count is down slightly. Digital health companies closed 245 deals in the first half of the year, while they closed 273 in the same period last year, the report said. Even so, megadeals, or raises above $100 million, are rising. There were 11 megadeals in the first half of the year, which is on pace to pass the 17 megadeals that took place in all of 2024. There has also been a flurry of M&A activity within digital health this year. The sector closed 107 M&A agreements in the first half of 2025, which could quickly top the 121 total M&A deals that closed in 2024. And, much to the relief of many digital health investors, Hinge Health and Omada Health took the leap and debuted on the public markets. Rock Health said these exits were undeniably "the breakout moments of 2025 so far." "These public market debuts have given investors much-needed redemption after an exit drought, tough public market performances, and a string of recent take-privates," Rock Health said. Read the full report here. Feel free to send any tips, suggestions, story ideas and data to Ashley at
